Olmstead, Inc. Life Agency v. Commissioner
United States Tax Court
Petitioner was the exclusive general insurance agent for Iowa for an insurance corporation from 1929 through 1955. In 1955 the petitioner, responding to the insurance corporation's suggestion that the exclusive agency contract be terminated, executed a new agreement with the corporation under which the old contract was canceled and petitioner obtained the right to receive payments of $ 500 a month, beginning February 1, 1956, over a period of 180 months.
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Petitioner was the exclusive general insurance agent for Iowa for an insurance corporation from 1929 through 1955. In 1955 the petitioner, responding to the insurance corporation's suggestion that the exclusive agency contract be terminated, executed a new agreement with the corporation under which the old contract was canceled and petitioner obtained the right to receive payments of $ 500 a month, beginning February 1, 1956, over a period of 180 months. The insurance corporation based the total amount of consideration upon the present value, at the time of the new agreement, of the…
1Opinion of the Court
MuuRoney, Judge:
The respondent determined a deficiency in the petitioner’s income tax for the year 1956 in the amount of $27,009.34. The issues are:(1) Whether the entire fair market value of a contract under which petitioner obtained the right to receive an annual fixed amount over a period of 15 years is includible in petitioner’s gross income in the year the contract was effective, and(2) Whether the amount received by the petitioner is taxable as ordinary income or as capital gain.
ITNDÍNGS 03T PACT.
Some of the facts have been stipulated and they are herein incorporated by this reference.
Th…
2Cases cited6 opinions
- Hort v. CommissionerSupreme Court of the United States · 1941
- Commissioner of Internal Revenue v. OatesCourt of Appeals for the Seventh Circuit · 1953
- Motor Products Corp. v. CommissionerUnited States Board of Tax Appeals · 1942
- City Bank Farmers Trust Co. v. HoeyDistrict Court, S.D. New York · 1942
- West Missouri Power Co. v. CommissionerUnited States Tax Court · 1952
1 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- William J. Wineberg, and the Estate of Janet R. Wineberg, Deceased, William J. Wineberg v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1964
- Commissioner of Internal Revenue v. Olmsted Incorporated Life AgencyCourt of Appeals for the Eighth Circuit · 1962
- Willits v. CommissionerUnited States Tax Court · 1968
- PITTSBURGH-DES MOINES STEEL COMPANY v. United StatesDistrict Court, W.D. Pennsylvania · 1973
- Olmstead, Inc. Life Agency v. CommissionerUnited States Tax Court · 1960
4 more not listed; retrieve them via the Exa API.